Hedge Funds 2009 Q4

Hedge Funds 2009 Q4

Hedge Funds Add $14 Billion in End of 2009


Hedge funds have achieved another goal showing their recovery from the woes of 2008.  In the last quarter of 2009, hedge funds took in $13.88 billion, the largest quarterly gain since the first quarter of 2008.  If investor confidence is any indicator, hedge funds are continuing last year's recovery into 2010.
Hedge funds’ salad days are back, according to a new report from Hedge Fund Research.
The firm said that investors poured $13.8 billion into the industry in the fourth quarter. It is the largest quarterly inflow since the first quarter of 2008, before the economy began to tank.

“In many respects, hedge-fund performance in 2009 suggests an aggressive return of risk—essentially the reverse of the financial crisis of 2008,” Kenneth Heinz, HFR president, said.

While the inflows are good news to be sure, they didn’t do much to blunt the industry’s outflow for the year. All told, investors withdrew $131 billion from hedge funds in 2009.

But strong performance helped mask even that outflow: Hedge funds managed $260 billion more than they did at the end of the first quarter of last year.  Source


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